JT has reported first quarter results for 2020, with a 14 per cent increase in adjusted operating profit to JPY 158.2 billion (USD 1.48 billion), which was driven by the growth of the international tobacco business, pharmaceutical business and processed food business, exceeding the decline in the Japanese domestic tobacco business, the company said.

Revenue increased 2.8 per cent to JPY 519.6 billion (USD 4.87 billion). The international tobacco business had significant favourable pricing gains compared to the same period last year, causing a higher growth rate for this quarter, JT said.
On a reported basis, adjusted operating profit increased 5.8 per cent to JPY 146.9 billion (USD 1.37 billion), despite the negative impact of foreign currencies in the international tobacco business.
Operating profit decreased 29.4 per cent to JPY 129.0 billion (USD 1.2 billion) despite the increase in the adjusted operating profit, due to an unfavourable comparison to the previous year related to one-time compensation gains in the pharmaceutical business.
JT’s first quarter results show that the company’s total shipment volume declined 0.6 per cent due to industry volume contraction in several markets, partially offset by favourable inventory movements mainly linked to COVID-19 lockdown situations.
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said: “Our consolidated first quarter results were strong, driven by robust growth in the international tobacco business which had a strong first quarter and significant favourable pricing gains compared to the previous year. As of the first quarter, there was limited impact to our business following the COVID-19 outbreak. We are not revising the 2020 forecast. Given that the global impacts of COVID-19 are becoming prevalent from April onwards, we will continue to closely monitor how the pandemic and the currency headwinds impact our business and financials.”